The Amount of Assets Per Dollar of Equity Capital Is

question 90

Multiple Choice

The amount of assets per dollar of equity capital is called the

• A) asset ratio.
• B) equity ratio.
• C) equity multiplier.
• D) asset multiplier.
• E) return on equity.

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Definitions:

No Shirking Constraint

A principle in labor economics that suggests wages are set to deter employees from shirking or underperforming.

Unemployment

The state of being without a job despite actively looking for work.

Downward-sloping

A term used to describe a graphical representation where a line or curve moves lower as it travels from left to right, indicating a negative relationship between two variables.

Efficiency Wage Model

An economic theory suggesting that higher wages might lead to increased productivity by attracting better employees and increasing worker motivation.